Set a medium saucepan over medium heat. Sauté the shallot and garlic in oil until tender, 3-5 minutes.
Add the water, half the coconut milk, quinoa, salt and pepper. Cover with a lid, and bring to a boil. Then turn temperature down and simmer for 15-20 minutes until most of liquid is absorbed.
Stir in the rest of the coconut milk, nutritional yeast, cayenne pepper, and shredded vegan cheese. Simmer covered for 3-5 minutes. Turn off the heat. Rest for 5 minutes before serving.